FREAKY FRIDAY: #LCExcl – Understanding Licensing Lingo

Licensing is the most common method to acquire the right to exploit IP. In a good licensing agreement, both parties benefit. The licensor gains the benefit of a brand extension and revenue (via royalties) without any investment in product development, production, or marketing.

Confused? Check this video to understand the different jargons associated with licensing:

Brand licensing is the leasing of a brand name to a company other than the owner of that particular brand.

While licensing agreements by their nature tend to be one-sided to protect the brand owner, a solid understanding by both parties will ensure everyone gets off on the right foot.